Suzlon Energy's ₹172.76 Cr Income Tax Penalty: Company Shares Update

Suzlon Energy Ltd in a stock exchange filing on Monday, said that the Income Tax Appellate Tribunal (ITAT) has cancelled a penalty order worth ₹172.6 crore.

"This is in continuation to our letter dated March 28, 2024 inter alia referring to a penalty order u/s.270A of the Income-tax Act, 1961 of ₹172.76 crore by National Faceless Penalty Centre, Income Tax Department, in respect of certain disallowances including that of claim of depreciation on goodwill for the financial year (FY) 2016-17," the renewable energy solution provider stated in a BSE filing.

"In the appeal filed before the Income Tax Appellate Tribunal (“ITAT”), ITAT has decided the quantum appeal in favour of the Company for the said FY. Consequent to the effect giving order passed by the Jurisdictional Assessing Officer (“JAO”) received by the Company on 29th December 2024, the JAO has cancelled the aforesaid penalty order. With that, the matter of penalty of Rs.172.76 Crores stands settled in favour of the Company," the company added.

Previously, the company had concluded a long-standing legacy matter with the Enforcement Directorate (ED) (Hyderabad) due to delays in realisation of export proceeds for shipments completed till the fiscal year 2016-17 by its subsidiary Suzlon Wind International Ltd.

Shares of Suzlon Energy traded 0.5 per cent lower at ₹62.92. The stock has risen 63 per cent in 2024.